Lowering the price of electricity by 3 points to lay the foundation for the goal of electricity sale side reform

[Upstream and downstream of China's instrumentation network industry] Informed sources said that China will announce the reduction of on-grid tariffs by the end of this year, which will be announced at the earliest in early November to boost the weak economy. The rate of reduction or average is approximately 0.03 yuan per kilowatt-hour.


The current coal price is low, and the cost of power companies is correspondingly reduced. Compared with the difficult situation of coal companies, the power industry has a lot of profits. The performance report released by some electric power listed companies shows that in the environment of economic downturn, the electric power industry has made considerable profits. Among them, Huadian International's third quarterly report showed that the net profit in the first three quarters was 6.07 billion, an increase of 28.13% year-on-year.

Therefore, some analysts believe that downgrading on-grid tariffs is actually transferring part of the profits of power companies to downstream power grid companies. If the sale price cuts, it will directly benefit non-ferrous metals, steel, cement, chemical and other high-energy-consuming industries.

The day seems to know. On October 28th, Hubei Province will impose a total cancellation of the urban public utility surcharge on the additional areas for urban public utilities. The price of residential electricity will be lowered by 1.5 cents/kWh, general industrial and commercial and other electricity (excluding small and medium-sized chemical fertilizers). (E) lowered 1.3 cents/kWh, while other categories lowered 1 cent/kWh. This policy was implemented on October 1, 2015.

The reduction in sales price will reduce the annual electricity expenditure in Hubei Province by 1.114 billion yuan, of which the average industrial users will reduce their electricity bill by 622 million yuan annually, and the average industrial and commercial users will reduce the annual electricity bill by 337 million yuan. It will reduce electricity expenses by 255 million yuan. It can be seen that the biggest benefit is the large power users.

From a macro perspective, the national economy is gradually declining and is no longer suitable for large-scale financial investment to stimulate growth and boost economic confidence. However, micro-stimulation can still make a difference. For example, the reduction in interest rates in the financial sector, and the reduction in the price of public goods such as electricity and oil prices, in the final analysis, is to reduce the cost of living or production of enterprises and increase household savings. Accumulation of enterprises is conducive to boosting domestic demand and revitalizing the real economy.

As the public product that affects the widest range of society, electricity has a strong butterfly effect on price changes, especially for those enterprises with high energy consumption. In addition, the country may also want to use this price reduction to further promote the market-based reform of electricity prices and lay the foundation for the 2017 power-selling reform goal.

Xia chief believes that as long as electricity price control still exists, power generation companies and grid companies will eventually become the final buyers of price cuts.

In addition to this, another news, “The introduction of additional charges for urban public utilities in additional areas of urban public utilities” is intriguing. It is a question of who pays for the high electricity bills for urban facilities such as street lights.

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